McEwen Mining Amends Term Loan Facility, Raises Additional $15M From Rob McEwen

McEwen Mines

TORONTO, April 05, 2022 (GLOBE NEWSWIRE) — McEwen Mining Inc. (NYSE: MUX) (TSX: MUX)(“McEwen” or the “Company”) is pleased to announce that it has modified its $50 million senior secured term loan facility (the “Term Loan”) to gain financial flexibility and has entered into a new $15 million unsecured subordinated promissory note (the “Promissory Note”).

“The reduction in cash flow from operations in the first quarter placed McEwen Mining in a difficult position that we had to overcome. I invested an additional $15 million through an unsecured promissory note so that we could implement corrective measures. It was also beneficial to extend the maturity of our term loan to allow us to invest in production growth and mine life extension prior to debt repayment. Operating results are expected to improve from the current quarter and resume the positive trend we experienced in 2021. Gold Bar met our first quarter production target and Los Azules made significant progress,” said Rob McEwen, President and Chief Owner. “The variance from our first quarter financial guidance was caused by lower production at the Fox Complex and San Jose. The loss of labor due to COVID-19 was a significant factor at both mines.Severe cold temperatures and equipment failures also occurred at the Fox plant.

The maturity of the term loan was extended to March 31, 2025, the amortization period and certain covenants were also changed, and all security interest in McEwen Copper Inc. and the Los Azules copper project was removed. The principal amount of the loan and the reference rate remain unchanged. The amendment will eliminate the need to repay $10 million of principal in 2022 and $40 million in 2023 and allow McEwen Copper to raise additional funding and continue its IPO.

In consideration for the term loan extension and other amendments, Sprott Private Resource Lending II (Collector), LP will receive additional interest in the form of 588,235 restricted common shares of the Company. Evanachan Limited, an entity wholly owned by Rob McEwen and a lender of half of the principal outstanding under the term loan, has waived any right to receive additional interest.

In addition, the Company entered into a $15 million promissory note with Evanachan Limited maturing on September 30, 2025 and bearing interest at the rate of 8% payable monthly in arrears. The promissory note will be used for working capital purposes and may be redeemed by the Company at any time without penalty.

This press release contains certain forward-looking statements and information, including “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements and information expressed, as of the date of this release, Estimates, forecasts, projections, expectations or beliefs of McEwen Mining Inc. (the “Company”) regarding future events and results. Forward-looking statements and information are necessarily based on a number of estimates and assumptions which, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies, and nothing only warrants these statements and information will prove to be accurate. Accordingly, actual results and future events could differ materially from those anticipated in such statements and information. The risks and uncertainties that could cause future results or events to differ materially from the current expectations expressed or implied by the forward-looking statements and information include, but are not limited to, the effects of the COVID-19 pandemic. , fluctuations in the market price of precious metals, risks in the mining industry, political, economic, social and security risks associated with overseas operations, the company’s ability to receive or receive in time permits or other approvals required in connection with the operations, the risks associated with the construction of mining operations and the commencement of production and the projected costs thereof, the risks associated with litigation, the state of the markets for capital, environmental risks and hazards, uncertainty in the calculation of mineral resources and reserves and other risks. Readers should not place undue reliance on any forward-looking statements or information contained herein, which speak only as of the date hereof. The Company undertakes no obligation to reissue or update any forward-looking statements or information as a result of new information or events after the date hereof, except as required by law. See McEwen Mining’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and other filings with the Securities and Exchange Commission under “Risk Factors” for additional risk information. , uncertainties and other factors relating to forward-looking statements and information about the Company. All forward-looking statements and information contained in this press release are qualified by this cautionary statement.

The NYSE and the TSX have not reviewed and accept no responsibility for the adequacy or accuracy of the contents of this press release, which was prepared by the management of McEwen Mining Inc.

McEwen Mining is a diversified gold and silver producer and explorer focused on the Americas with operating mines in Nevada, Canada and Argentina. It is also heavily exposed to copper through its subsidiary McEwen Copper, owner of the Los Azules copper deposit in Argentina.

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